Don’t let the economic downturn derail your CX strategy

What you need to know to propel your brand forward

An uncertain economy is frustrating for businesses of all shapes and sizes. There’s no reason to pretend otherwise.

Leaders are forced to make tough decisions, often involving resource allocation and unpleasant cost cuts. In the world of consumer brands, customer experience (CX) programs are no stranger to the proverbial chopping block—finding themselves reduced or paused while other areas of the business are prioritized.

But hear us out … pulling back on your CX program is not the move. In fact, we’ll go as far as to say you should consider increasing your CX investment in an economic downturn.

Here, we’ll offer a few reasons why and share some ways you can seize this opportunity. (Yes, we’re willing to call it an opportunity.)

Why scaling down your CX program is usually a mistake

CX programs can actually save you money

Maybe it seems counterintuitive, but spending more on your CX program when in cost-cutting mode can save you money in the long run. A better customer experience helps reduce churn, boost employee retention, and increase customer loyalty. Together, these can translate into higher revenues and profits. Don’t forget: a loyal customer is more likely to stay with you through the tough times and remain when the economic sun shines once again.

CX programs can act as the great differentiator

It’s difficult enough to find ways to stand out from industry competition. Slashing your CX budget makes it even harder. If you’re delivering a superior customer experience, people will be more likely to choose you over those competitors not bending over backward to make customers feel seen and heard—even more so during times when customers are extra choosey about their purchases.

CX programs can drive innovation

Please excuse the “when the going gets tough, the tough get going” cliché but, hey, clichés are clichés because so often they’re true. When other companies retreat in an unsteady economy, consider investing in new ways to serve, surprise, and delight your customers—drawing on insights you gain from customer feedback. You may uncover new revenue streams that wouldn’t be possible if spending less or staying the course.

How to advance your CX program in an uncertain economy

Focus on cost-effective CX initiatives

Do your best to focus on ideas that deliver real impact while easing tension on your bottom line. For example, maybe this is the right time to invest in technology that can help you automate customer service inquiries and reduce the need for live support.

Trust your data to guide smart business decisions

Your customers are likely shifting their daily spending habits, especially if their personal financial situations are strained. Gathering deep insights into customer needs and preferences—made easier with the guidance of a software with a service (SwaS) partner—will help you stay agile and adapt to changing market conditions and purchasing behaviors.

Prioritize efforts that drive revenue

Spend your energy on CX initiatives that bring in revenue—those that can help you upsell existing customers or acquire new ones. Have you invested in personalized marketing campaigns that can be tailored to individual preferences, for instance? If ever there was a time to target your most loyal customers …

Empower your front-line teams

Your front-line employees are often the biggest drivers of a great (or not so great) customer experience. Invest in processes and technology that enable your team to practice proactive service recovery while customers are still on site, as well as tools and training they can use to help your brand resonate when times are tough. Your team may also benefit from greater access to customer data and analytics.

Stay connected with your customers

Use your CX program to collect as much feedback as possible, and then take genuine steps to improve your products, services, and brand experiences. People will notice and hopefully help spread the word. And don’t shy away from engaging with customers on social media and in communities where you operate, letting them know you’re there for them.

Work with a CX partner committed to improving every step of the process

Unstable economic conditions are stressful. Like we said, no need for sugarcoating. But if you’re ready to go on the offensive with your CX program to retain and grow your customer base in the face of difficulty, request a demo. We’ll work with you to make the most of it.